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Documente Profesional
Documente Cultură
and
guidance
received
by
my
organizational
guide
those people who helped and supported me during the course, for
completion of my Project Report. ..
EXECUTIVE SUMMARY
This marketing strategic plan has been written keeping in mind the Indian
operations of Nike Inc. the global sports shoe giant. It aims first, at
analyzing the sports shoe industry India and finding a place in it for Nike. It
then sets out to describe the target audience for the product range and
finally suggests a host of marketing strategies and activities that will help
Nike to achieve its target of becoming the #1 sports shoe brand in India.
The plan begins with a brief overview of the product category being dealt
with, namely premium quality sports shoes. It also dwells briefly on the
history of the company and its current position and activities. The project
moves on to the crux of the matter the marketing plan to be followed by
Nike in India. Firstly, the objectives behind this plan and the core strategy
are stated. Customers to be eventually targeted are described and
compared with competitors customer targets. After starting the objectives
and reasoning behind them, the actual marketing programs are described in
detail. This includes aspects such as pricing, advertising, promotion, sales,
channels, and the company website. Suggestions are made on each and
every
one
of
these
aspects;
improvements
and
innovations
are
recommended. The plan then goes on to the customer analysis section. The
customer base is identified and various segments are pointed out. Various
criteria and factors have been taken into consideration while segmenting
the market. We have also tried to ascertain why customers buy these
products, how they choose, and what factors matter most when making
their decisions.
The last few pages of this marketing plan deal with the various ways in
which the plan, once implemented, can be monitored and controlled
TABLE OF CONTENT
1) INTRODUCTION 1-13
a) Background of the problem 1
b) About The Nike Industry 3
c) Nike Maxsight 4
d) Industry Overview 5
e) Product Trend 8
2) RESEARCH METHODOLOGY 14-20
a) Research objectives 14
b) Research design 15
c) Data sources 15
i) Primary data 15
7) ANNEXURE 76-82
8) BIBLIOGRAPHY 83
INTRODUCTION
BACKGROUND OF THE PROBLEM
Since the late 1980s, Business School marketing professor Itamar Simonson
has looked for ways to understand how consumers make choices. Much of
his work debunks the accepted theory that giving consumers what they
want and making a profit are the most basic principles of marketing.
Customers may not know what they want, and second-guessing them can
be expensive, says the professor who teaches MBA and PhD marketing and
consumer decision-making courses. In Simonsons words, The benefits and
costs of fitting individual customer preference are more complex and less
deterministic
than
has
been
assumed.
Thats
because
customer
customers purchases and suggests other books they might like. Dell builds
computers
from
mass-made
parts
to
customers
specifications.
But
Simonson argues some companies can take the concept too far, like the
Custom Foot chain of shoe stores that took detailed measurements and
specifications from each customer to design one-of-a-kind shoes. Custom
Foot didnt take into account that some customers were put off by the
individualized attention, Simonson says, and felt obligated to buy the shoes
because the store went to so much trouble. They often didnt come back. So
knowing only the customer preferences is not enough. It is required to
understand other aspects of customer behavior. Kipping this in mind,
present study will find out and analyze consumer behavior of Nike shoes
with reference to ladies segment.
WHAT IT IS
Nike MaxSight, developed in partnership with Bausch & Lomb, is a tinted
soft contact lens that behaves like sunglasses, reducing glare and filtering
out 95% of UVA and UVB and more than 90% of blue light. But because the
lens rests directly on the eye, theres virtually no distortion as with standard
sunglasses. Athletes get the same clear view at all angles. Plus, Nike
MaxSight eliminates the environmental effects that plague sunglasses like
fogging, scratching, additional weight, or nosepieces and frames to obstruct
vision. Theres no obstruction from the edge of the lens, the frame or the
nosepiece, because they dont exist. And there are no pressure points and
no slippage. Max Sight also eliminates light leakage, reducing the need to
squint, allowing the eye to relax and perform more naturally.
Nike
MaxSight is, in effect, one giant visual sweet spot. Nike Maxsight
Marco Materazzi of Italys Inter Milan football club and Baltimore Orioles
second baseman Brian Roberts are among the pro athletes wearing Nike
MaxSight. It has been a lot of fun to start the season this hot, said
Roberts early in the MLB season. In fact, he became one of the first true
fans of Nike MaxSight after impressive initial results. During a spring
daytime game, Roberts said, I wore the lenses and went 2 for 4. They are
so awesome. With Nike MaxSight, theres minimal squinting in bright light,
and quicker visual definition when going from bright light to shadows.
Wearers will also discover a game-day benefit the look. It makes the eye
look distinct, the large-pupil effect, says Alan Reichow, Nike Vision
Consultant. It looks competitive.
THE
HISTORY
Nike began exploring the Nike Max Sight technology in 1997, conducting an
initial clinical project, then subsequent research projects using collegiate
athletes. Oregons Pacific University baseball players were the first athletes
to undergo testing. Coach Greg Bradley requested that he be allowed to try
them before his players. Hed never worn contacts, says Dr. Reichow. He
took two pitches and turned around and said, Ive never seen a ball that
distinct and clear. Put them on anybody who wants them.
INDUSTRY OVERVIEW
Bill Bowerman said this couple of decades ago. The guy was right. It defines
how he viewed the world, and it defines how Nike pursues its destiny. Ours
accessories
out
of
New
York
City
and
Yarmouth,
Maine.
PRODUCT TREND
Bovine skin was by far the most preferred leather material, followed by
goat/kid/lamb/sheep skin and crocodile skin. Respondents overwhelmingly
preferred the color black and, to a lesser extent, dark brown. For
handbags/briefcases, popular colors included light brown, white and red.
Consumer Segments with the Biggest Spending Power Male professionals,
managers and executives are the segment with the biggest spending power
for now and in the coming three years. Other major consumer segments
include male office workers; sole proprietors/business owners; female office
workers;
and
female
professionals,
managers
and
executives. The
respondents
picking
those
as
the
major
reasons
behind
the
PRODUCT PROFILE
Apart from delivering a pair of comfortable sports shoes Nike also provides
a number of value-added features with its products. The features that are a
part of every Nike sports shoe are as follows. High Performance Sports
Shoes: Nike has patented the Air system and has made it into a regular
feature in most of its models. Many models feature an air pocket in the shoe
that reduces the weight of the shoe and reduces pressure on the heels.
Besides the overall design and compactness of the shoes have made it a
favorite of many professional athletes around the world. Comfort: Nike
shoes are renowned all over the world for the comfort they provide. Well
padded and cushioned, they provide a tremendous level of comfort to the
wearer and reduce the strain to his feet while playing. Lightweight: This
attribute is in line with the two described above. A lightweight shoe provides
greater mobility and eases the pressure on the feet of the wearer.
Durability: People purchasing a pair of shoes at such a high price often feel
that they have made an investment. They would obviously want to see their
shoes last a long time. To prove this point we draw the example of the
authors of this marketing plan. All of us own a pair of Nikes and have been
wearing them for well over two years a symbol of the durability of Nike
shoes. Style: Nikes designs are considered to be the most stylish in the
industry and beat all others as far as looks are concerned. Attractively
packaged, it is a delight to bring a pair home. Add to this the Swoosh
the most recognizable symbol in sports and you have a product that would
give the user a definite sense of pride. Nike shoes also come with a
brand.
NIKE 6.O
NIKE SB
RESEARCH METHODOLOGY
Research
comprise
defining
and
redefining
problems,
formulating
RESEARCH OBJECTIVES
To analyze buying
behavior
of
ladies
segment
of consumers.
RESEARCH DESIGN
DATA SOURCES
There are two types of data. Source of primary data for the present study is
collected through questionnaire and answered by consumers of Nike shoes.
The secondary data is collected from journals, books and through Internet
search.
PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose
of facilitating the study is known as primary data. So in this research the
data is collected from respondents through questionnaire.
SECONDARY DATA
For the company information I had used secondary data like brochures, web
site of the company etc. The Method used by me is Survey Method as the
research done is Descriptive Research.
RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire .
Under this method, list of questions pertaining to the survey are prepared
for
marketing
staff
of
consumers
of
Nike
shoes.
IMPORTANCE SCALE
A scale that rates the importance of some attribute.
RATING SCALE
A scale that rates some attribute from highly satisfied to highly
unsatisfied and very inefficient to very efficient
SAMPLING UNIT: -
EXTENT:-
Where the survey should be carried out? I have covered entire residential
area of Delhi city for the survey
TIME FRAME:-
SAMPLING TECHNIQUE: -
SAMPLE SIZE
Consumers of shoes, 50 nos
DATA PROCESSING
METHODOLOGY
(i) Once the primary data have been collected, they are (I) edited
inspected, corrected and modified.
(ii) Tabulation bring similar data together and totaling them in
meaningful categories. Questionnaires are edited both in the field
and later in home. Field editing took place just often the interview.
Generally editing is required for open type of questions. Brief notes or
symbols are frequently used during the interview to initially record the
interviewers response since it was not desirable to interrupt the flow with
lengthy note taking. Then immediately after the interview, brief notes are
respondent. The responses are thoroughly checked in home for incorrect,
inconsequential or contradictions categories are developed only often the
replies has been reviewed. This review provided a feel for the pattern of
answers and thus determine what categories best represent the answers.
information
that
is
pertinent
or
relevant
to
the
study.
SAMPLE DESIGN
THE BASIS OF SAMPLING: Consumers of Nike shoes are chosen randomly, so that unbiased,
representative sample may be obtained.
LIMITATIONS OF RESEARCH
The geographical area was very much limited to residential area & so the
results are not particularly reflection of the current behavior.
information
that
is
pertinent
or
relevant
to
the
study.
Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.
Most of the people in India take their Nike Shoes in the period preceding
March & so the response to initial contacts were not all encouraging and
that has been the primary reason in the inability to quantify the results
large enough so as to deduce any relevant outcomes.
COMPANY PROFILE
Nike India Ltd (BIL) is Indias largest footwear company. Nike first
established itself in India in 1931 and commenced manufacturing shoes in
Batanagar in 1936. The company has its Headquarters in Kolkata and
manufactures over 33 million pairs per year in five plants located in
Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka),
Patna (Bihar), Hosur (Tamil Nadu). It secures its leather supply from two
tanneries in Mokamehghat (Bihar) and Batanagar (West Bengal). It has a
RECENT DEVELOPMENTS
Nike India has said that its Faridabad and Mokamehghat units are being
taken over by Fashion Shoe Private Ltd and BDCL Enterprises Pvt Ltd,
respectively. The company is also enabling the buy back provision in its
Articles of association to enable buy back of shares.
The assets and liabilities of both the units will be transferred to these
companies and shares will be offered in the agreed ratio to the existing
shareholders of Nike India Ltd on a record date, which will be fixed by the
Calcutta High Court.
While retail sales have increased both in value and volume, wholesale sales
have declined due to restriction of supplies as a means to recover
customersoutstanding. General recession and sluggish market conditions in
the industry also have had a direct impact on lower sales and profitability.
But Simonson has this to say: The fact that consumer preferences are
often fuzzy, unstable, and manipulatable is unlikely to change. So, the
effectiveness of methods to give customers exactly what they (say they)
want has been grossly exaggerated. His take on the long-held assumption
that individual marketing will supplant targeted marketing is not so fast.
In studies, he has learned that even when customers have well-defined
preferences and receive offers that fit those preferences, it is far from
certain that the response to such offers will consistently be more favorable
than those directed at larger market segments.
felt obligated to buy the shoes because the store went to so much trouble.
They often didnt come back. So knowing only the customer preferences is
not enough. It is required to understand other aspects of customer
behavior. Kipping this in mind, present study will find out and analyze
consumer behavior of Nike shoes with reference to ladies segment.
FUTURE PLAN
For the third quarter ended 30 September 2007, Nike India reduced its
losses to Rs 5.68 crore (Rs 8.51 crore) on a 9.2% increase in net profit to
Rs 154.27 crore (Rs 141.26 crore). Despite reducing its losses for the
quarter, Nike India has, over the last few quarters, been continuously
recording weak performances as a result of an overall slowdown in the
industry due to lower consumer spending. Increasing domestic competition,
particularly from the unorganized sector, has also been eroding into the
companys market share.
The company is finding it difficult to maintain its market share in a highly
price-sensitive
Indian
market,
despite
having
strong
brand
recall.
97% of the companys revenues are from the domestic market while the
remainder is from exports. Nike India is the biggest player in the Indian
shoe market.
Nike Indias major problems include its high cost of production and low
emphasis on marketing. The company may be able to address the first
problem through outsourcing products. Batas brand image has been
restricted to that of a company that emphasizes on utilitarian products more
than trendy ones. Customers feel the company is lacking in innovation.
Hence,
their
preference
has
shifted
to
other
local
brands.
Nike India has a large marketing network with over 1,500 showrooms, 27
wholesale depots and eight retail distribution centers across the country.
entered
into
retailing
tie-up
for
Lee
Cooper
shoes.
Nike India has also been trying to focus on aggressive marketing of its
product. The company has been going through a period of transition for the
past one year. With the expansion of the retail industry in New Delhi and
Mumbai, the company has recently decided to shift its marketing operations
to Delhi in order to provide value shopping for its customers. However, the
manufacturing activity and the registered office will continue at Kolkata.
Nike India has plans to invest in sophisticated machinery to retain its niche
place in manufacturing. The company has put a fresh focus to its retail
business. The company has decided to cleanse its wholesale operation by
building relationships with credit-worthy buyers.
It is to the companys credit that it has lately overhauled its marketing setup into a four-tier retail structure that will be stocked with products
matching the areas customer profile. A Nike outlet in an up market place
will offer a distinctly different range of footwear from another in the
suburbs.
At the same time, with the opening up of the economy, more and more
goods will be imported from China. This may significantly affect Nike Indias
prospects unless it manages to wean away customers with a drastic cut in
costs. Alternatively, like other Indian manufacturers, even Nike may
consider relocating its manufacturing bases in China. However, it is not that
easy a task to undertake.
Nike India has roped in Ogilvy & Mother for devising its festive season
advertising, side-stepping JWT, its incumbent agency. The job involves
developing special communication directed towards the festival season
shoppers.
Nike India Ltd (BIL) is Indias largest footwear company selling over 60 Mn
pairs per year in India, USA, UK, Europe, Middle East and Far East. BIL has
a market share of 60% in leather products and 70% in canvas shoes.
Leather 29 :57
Plastic 21: 9
GROWTH DRIVERS
The company has a very comprehensive distribution network which
comprises its own and franchise stores. It has 1500 showrooms, 25
wholesale depots and 8 distribution centers.
POPULAR BRANDS
Nike owns brands like Hush Puppies, Signor, Marie Claire Power, Sandak,
Hawai, Naughty boy and Ambassador. It also distributes other brands such
as Nike and Lotto.
Focus on middle-class and upper class Nike will continue to focus on middle
and upper class customers. It is introducing budget stores which will help
customers to identify with the brand. It is also increasing focus on rural
thrust for volume growth in the low-priced footwear segment.
VALUATION
BILs long-term success is dependent on the how labour issue is tackled and the flexibility, which it can
adopt to meet threat of imports and competition from local footwear companies. Long term investors with a
two-year investment horizon can accumulate the stock at current levels. It is also increasing focus on rural
thrust
for
volume
growth
in
the
low-priced
footwear
segment.
Lifting of quantitative restriction on import of footwear will lead to the market being flooded by imports.
Labor issues have always bothered BIL and this resulted in disruption of manufacturing activities on
numerous occasions.
Competition is hotting up in the domestic market due to popular brands such as Gaitonde, Red Tape, Lotus
Bawa and Tatas. These brands are gaining market share especially in the premium segment and in this
segment BIL has no significant presence.
Sales for Q1 CY2001 decreased marginally by 0.6% yoy to Rs 1590.7 mn. There was a net loss of Rs 30.2
mn as against a profit of Rs 39.6 mn in the corresponding period of the previous year. The loss is due to
lower operating margins and higher interest.
BILs long-term success is dependent on the labor issue and the flexibility, which it can adopt to meet
threat of imports and competition from local footwear companies. Long term investors with a two-year
investment horizon can accumulate the stock at current levels.
FINANCIAL HIGHLIGHTS
EPS (Rs.)--1.440.77
DPS (Rs.)-0.000.75
BV (Rs.)-37.2738.71
P/E range (x)-0.0 - 0.00.0 - 0.0
Debt / Equity (x)-0.320.26
Operating margin (% of OI) 0.90.82.6
Net margin (% of OI)-2.3-1.10.5
As on 30 June 2007, the public, institutions and foreign bodies held
31.23%, 13.91% and 0.16% stake in the company, respectively
LITERATURE REVIEW
consumption
phenomena
motivated
by
symbolic
meanings
(Holbrook and Hirschman, 1982). Individuals are not always looking for
efficiency and economy, but also for distraction, aesthetic, expression, etc.
(Boyd and Levy, 1963). Calling for a broadening of theoretical frameworks
of consumer behavior, many authors pleaded in favor of the study of all
consumption forms (Holbrook, 1986), being inspired by European semi logy
and American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; KehretWard,
Johnson
and
Louie,
1985;
Mick,
1986;
Holbrook,
1986;
OShaughnessy and Holbrook, 1988; Nth, 1988; Stern, 1988; GraftonSmall and Linstead, 1989). These are the study of signs, meanings and
production
of
symbols.
Fantasy,
emotion
and
pleasant
aspects
of
View
is
phenomenological
perspective
that
perceives
meanings,
responses
and
hedonist
criteria
(Holbrook
and
consumers and the products they consume, and suggests that a significant
proportion of consumption behaviors consist of social behaviors, and vice
versa (Solomon, 1983). This leads us to consider the importance of
socialization processes (family, reference groups) through which individuals
learn the meanings of symbols and those of consumption. With the
aforementioned meanings being negotiated and built through interactions
with others, consumption is not only an individual activity, but also a social
process of goods definition (Gallant and Kleinman, 1983). Since individuals
are often motivated to acquire products according to what they mean to
them and to members of their social reference groups (Leigh and Gabel,
1992), their behavior is subject to the pressures of cultural norms and the
expectations of socialization institutions rules such as those coming from
family and other reference groups (Faber, OGuinn and McCarthy, 1987;
Engel,
Blackwell
and
Miniard,
1993).
Thus,
Symbolic
Interactionism
cultural
negotiation
consensus
results
between
from
social
interactions,
actors
communication,
(Charon,
and
1989).
consumers
or
quality/reliability perceptions.
businesspeople)
had
no
influence
on
offers."
Kivetz
and
Simonson
replicated
these
findings
among a number of studies Simonson has been conducting since the late
1980s about how consumers make choices. Much of his work debunks the
accepted theory that giving consumers what they want and making a profit
are the most basic principles of marketing.
The theme that pervades Simonson's work is that customers may not know
what they want and second-guessing them can be expensive. In his words,
The benefits and costs of fitting individual customer preference are more
complex and less deterministic than has been assumed." That's because,
Simonson says, "customer preferences are often ill-defined and susceptible
to various influences, and in many cases, customers have poor insight into
their preferences."
In another recent paper, Simonson tackles the issue of one-to-one
marketing
and
mass
customization.
Supporters
of
these
marketing
approaches have suggested that learning what customers want and giving
them exactly what they want will create customer loyalty and an
insurmountable barrier to competition. In an example taken to the extreme
in the 2007 movie Minority Report, Tom Cruise's character Anderson runs
through a shopping mall past talking billboards that recognize him by name
and urge him to buy products he has expressed interest in such as jeans
and Ray-Bans; the ultimate in personalized advertising. But Simonson has
this to say: "The fact that consumer preferences are often fuzzy, unstable,
and manipulatable is unlikely to change. So, the effectiveness of methods to
give customers exactly what they (say they) want has been grossly
exaggerated." His take on the long-held assumption that individual
marketing will supplant targeted marketing is "not so fast." That's because
consumers are very difficult to figure out, science fiction and technology
notwithstanding. "Furthermore, even when customers have well-defined
preferences and receive offers that fit those preferences, it is far from
certain that the response to such offers will consistently be more favorable
than those directed at larger market segments."
It's all psychology. Consumers with well-defined preferences may be
skeptical that a marketer could match expectations. Those who don't know
what they want may not ever see the fit with what the seller wants them to
buy. So, individualized offers depend on customers' preferences; how the
offer was extended & and on trust. "Effective individual marketing requires
not only an understanding of individual preferences and matching offers to
those preferences, but also a thorough familiarity with the various factors
that impact customers' responses," he writes.
This is a tall order, one that some companies have been able to fill at least
to some extent. For example, Amazon keeps track of customers purchases
and suggests other books they might like. Dell builds computers from massmade parts to customers' specifications. But Simonson argues some
companies can take the concept too far, like the Custom Foot chain of shoe
stores that took detailed measurements and specifications from each
in
the
customization
Journal
gives
of
Marketing
consumers
the
Research
opportunity
this
to
year.
choose
characteristics they want in a product when they shop for it online. Many
companies are looking at online customization as the future of online
business
Janis
Crow,
Kansas
State
University
marketing
instructor,
researched how people make choices on the Internet. She recently studied
consumers in an online environment and their ability to customize several
products - pizza, shoes, and electronic devices.
Crow said that her study posed two questions for respondents: first, how
difficult is it to customize a product, and secondly, how likely is the person
to purchase the product he or she has customized?
All participants in the study chose to customize products. In terms of
customers likelihood to purchase, a greater number of customers made
purchase decisions when there are more options to choose, she said.
However, it was slightly more difficult when more features were offered.
She created a website where people could customize products to their
individual preferences and needs. Crow selected three generic products:
pizza, shoes, and a Personal Digital Assistant (PDA). Thirty-one college
students took part in the study.
"Students could customize the three products, and I provided a drop-down
box on the site with attributes to choose from," she explained. Consumers
could click on a drop-down box to customize a product they would want to
purchase, she said. She found that more people relied on the default
choices rather than selecting other choices that were offered. She said,
some research suggests that many people do not want to put a lot of effort
into purchase decisions. "A lot of times, people may not have preferences
already in mind," she said. When consumers have the chance to create
preferences, the question is whether they rely on previous preferences or if
they develop new ones, she said. In the future, Crow says she will be
studying strategies that consumers go through during purchase decisions. "I
will be studying decision processes to develop computer aids that could help
the consumer reach their purchase decision," she said.
Although her current project involves analyzing the consumer behavior of
college students in an online environment, in future projects she plans to
analyze other demographic groups. Customization will be a key business
to
formulate
an
effective
and
suitable
market
strategy.
In view of this, the HKTDC conducted a survey study in four major mainland
cities in February 2007. The study was composed of two interlocking
surveys. The first survey (survey on shoppers) successfully interviewed a
total of 1,000 shoppers of leather consumer goods in four major cities,
namely Beijing (BJ), Chengdu (CD), Guangzhou (GZ) and Shanghai (SH).
The second survey (survey on retailers) interviewed managers/officers-incharge
of
major
department
stores
in
these
four
cities.
CONSUMER BEHAVIOR
SHOPPING TIME
MARKETING CHANNELS
Promotional activities in shopping malls and department stores are the most
popular
promotional
reduction,
TV
and
sales
commercials,
activities,
discount
followed
coupons,
by
discount/price
promotional
stands,
PURCHASING POWER
SELECTION CRITERIA
When choosing leather consumer goods, product quality stood out as the
principal consideration for respondents, followed by product material,
craftsmanship, style/design, price and brand.
POPULAR BRANDS
wider
selection
than
any
of
the
competition.
strategy.
Product: The product range of Nike comprise of shoes, sports wear, watches
etc. Its product history began with long distance running shoes in 1963.
(Past 17 years: Air Jordan basketball shoes). Wide range of shoes, apparel
and equipment. For example:
Nike Oregon Digital Super Watch
Nike Presto Cee Digital Medium Watch
Nike Presto Cee Digital Small Watch
Nike Ron Analog Watch
Nike Triax 10 Regular Watch
Nike Triax Armored II Analog Super Watch
Nike Women's Imara Fit Digital Watch
SWOT ANALYSIS
STRENGTHS
the
top
athletes
and
gained
valuable
coverage.
move
production.
Nike is a global brand. It is the number one sports brand in the World. Its
famous 'Swoosh' is instantly recognizable, and Phil Knight even has it
tattooed on his ankle.
WEAKNESSES
OPPORTUNITIES
always buy it to participate in sport. Some would argue that in youth culture
especially, Nike is a fashion brand. This creates its own opportunities, since
product could become unfashionable before it wears out i.e. consumers
need to replace shoes.
There is also the opportunity to develop products such as sport wear,
sunglasses and jewellery. Such high value items do tend to have associated
with them, high profits.
The business could also be developed internationally, building upon its
strong global brand recognition. There are many markets that have the
disposable income to spend on high value sports goods. For example,
emerging markets such as China and India have a new richer generation of
consumers. There are also global marketing events that can be utilized to
support the brand such as the World Cup (soccer) and The Olympics.
THREATS
The market for sports shoes and garments is very competitive. The
model developed by Phil Knight in his Stamford Business School days (high
value branded product manufactured at a low cost) is now commonly used
and to an extent is no longer a basis for sustainable competitive advantage.
Competitors are developing alternative brands to take away Nike's market
share.
sensitivity
is
potential
external
DATA ANALYSIS
1.
Demography of respondents
threat
to
Nike.
ANALYSIS:
2. It was observed that the majority of the respondents consist of
professional from various fields like engineers, software professionals,
working executive etc. who effective form 38% of our database. While
36% were students from various fields. Others constitute designers
and athletes etc. the further study is carried on the buying behavior of
the above mentioned categories of consumer, which shows that our
consumer is well educated and is very well informed about the
product.
ANALYSIS:
In the survey conducted a direct relation between the income level
and the spending capacity was observed. Also it was found that
students were spending in the range of Rs 1000 Rs 3000 as
compared to the working class professionals who were ready to spend
between Rs 3000 Rs 6000, since they have higher spending power
because of higher income levels.
SHOPPING SEASON
ANALYSIS:
Amongst the student and the professional it was found the consumer
buying BEHAVIOR does not change with respect to the seasons and
occasion as most of the consumer would like to buy their shoes as
and when need arises, whereas the businessman generally do their
shoes
shopping
during
traveling
or
on
special
occasions.
BRAND RECOLLECTION:
ANALYSIS:
When asked about reconciling a sports shoes brand about 70% of the
respondent were able to recall REEBOK or ADDIDAS were as rest were
able to remember NIKE and FILA brands. This was due to the fact that
REEBOK has brand ambassador like RAHUL DRAVID and YUVRAJ
SINGH.
ANALYSIS:
Among the various factors like social, psychological, personal and
cultural factors it was observed that the consumer give more
preference to his personal choice and psychological factors like 50%
of the people consider comfort and they generally do not consider
durability as an important aspect because they believe that it comes
along with the brand. Also the social factor like style was second most
important factor behind the consumer buying motives.
this further shows that the consumer look for style in the NIKE more
in comparison to the other brand hence, gave their 30 points to it
whereas 20 in case of other brands it was seen that the comfort
remains at equal place even while choosing a competitive brand.
BUYING FORCES
ANALYSIS:
It was observed that consumer is forced by no factors like peer
pressure, family and friends and some time people would like to buy a
product because it is being endorsed by their favorite celebrity. It was
observed that the beside that personal choice of the respondent, the
pressure from the friends plays an important buying force for the
students, while the peer and college in case of the professional and
the least pursuing factor is family which was seen in case of the
respondents belonging to age group 35 years and above.
CUSTOMER SATISFACTION:
ANALYSIS:
Because of the quality product offered by the REEBOK about 60% of
the respondents were either very satisfied or satisfied, while 10% did
not gave any response as they were not using the REEBOK shoes.
3. Do you ask for a specific brand by name?
90% people say yes to this. and the remaining 10% say no.
4. Which brand do you generally use?
People in India prefer Nike the most as we can see that 24% %
people prefer Nike sports wear. Then comes Adidas and Reebok.
62% of the consumers buy Nike only once a year. Here we notice one
thing that some dont buy Nike.
10. Are you satisfied buying Nike?
The people who buy Nike are fully satisfied buying it, their percentage
is 64%. Only 15 % are not satisfied buying it.
11. Do you think Nike serves the purpose of being a good brand, for
Sports wear?
56% of the people agree that Nike serves its purpose for being a
sport
brand.
Only
27%
people
dont
agree
with
it.
12. Will you prefer Nike launching a new range which can serve the
purpose of service class?
67% say yes to the idea of launching a new range for the service
class.
36
dont
have
any
idea
of
this.
distinctive
competency
lies
in
the
area
of
marketing,
fitness,
competition,
and
sportsmanship,
consumers
the
future
and
stay
step
ahead
of
its
competitors.
Nikes products in the past have been concentrated in the higher end
of the pricing category. An entrance will now be made into lower price
categories with these quality products. This will enable Nike to capture
an
even
greater
hold
on
market
share.
the range. This would be helpful in building customer loyalty and give
them an incentive to make repeat purchases. A most valued customer
database could be created from her e and various forms of direct
marketing could be directed at them. This would help the company to
retain its existing customers.
A third way to improve customer relationship would be to issue gift
coupons and vouchers. People would have the facility to buy these
vouchers and present them to their dear ones. This would be a good
way to reach out towards newer customers through existing ones.
RECOMMENDATIONS
To explore the mainland market, Hong Kong companies should
position themselves in areas in which they are strong. From the
viewpoint of mainland consumers, Hong Kong's leather consumer
goods are considered competitive in the high-end and mid-range.
Mainland consumers are brand conscious, and it is vital to promote
own brands which have clear image.
This survey also shows that Hong Kong products are preferred for
their design/style and quality. Bearing these in mind, Hong Kong
companies should never compromise on quality, and they should
allocate more resources to product design, selection of material and
craftsmanship.
promotion
campaigns,
like
special
discounts
and
consumer
receptiveness
to
legitimate
marketers:
an
US consumers,
polled
in
and
tolerant
of
marketing
emails
than
men.
popular
types
of
marketing
emails
included
account
(41.1%)
and
household
tips/recipes/crafts
(42.1%).
Of
22.1%)
categories
and
of
household
strong
interest
tips/recipes/crafts
were
electronics
(13.6%).Other
and
computer
software/hardware, 13.8% and apparel/shoes at12.3%. Permissionbased email also continues to be the preferred method of contact
from the favorite retailer regarding new products, services or
promotions (preferred by 59% of consumers), while only 32.1%
preferred direct mail. Sender Recognition, Content Relevance Most
Impacts Purchasing consideration behavior, the line continues to be
the most compelling reason to open permission-based email, cited by
63.3% of all respondents, an increase from 59.9% in2005. This
speaks to the growing significance of user recognition of sender and
the power of brands even more important in an era of spam. Of
all types of subject lines, discount offers are the primary motivational
factor for opening permission based email (increased to59.5% of all
respondents from 56.7% in 2007), while compelling news and
information
fell
from
57.6%
of
all
respondents
to
48.6%
in
apparel/shoes
at
83.4%making
purchase,
computer
Respect to Email Marketing Two very specific areas stand out in how
men vs. women react to email marketing: men have a much broader
definition of Spam, while women are much more likely to be active
purchasers as a result of permission-based email. More men than
women consider spam to fall into these very broad definitions: 65%
cited an email from a company that I have done business with but
comes too often while only 56% of women did so, 61% of men cited
an email that may have been permission based but comes too
frequently while only 55% of women did so and 36% cited any email
that tries to sell me a product or service while 32% of women did so.
Correspondingly, women are more sensitive to emails of offensive
subject matter (94% women vs. 91% men) .Active purchasers, those
who purchased in multiple product categories or from various types of
companies (multi-channel shoppers) after receiving an email, are
more likely to be women than men. Aloof these data points add up to
online behavior that mirrors offline.
Women remain the primary household purchasers, 2007 Consumer
Email Study Respondents with multiple accounts likely to use a free
one for online purchases Women more likely to be active purchasers,
multi-channel purchasers.
The fourth of Double-Click annual consumer email studies points to an
increasing sophistication in consumer usage of email functionality and
a corresponding complexity of purchasing behavior. The Spam crisis
continues to affect consumer behavior online but does not necessarily
cloud
consumer
receptiveness
to
legitimate
marketers:
an
ANNEXURE
QUESTIONNAIRE
1 I buy my own shoes
Very
frequently
sometimes
never
2 I find buying shoes a pleasurable event.
Very frequently
frequently
sometimes
never
3. I buy costly shoes
Very frequently
frequently
sometimes
never
4 for purchasing shoes, I can travel long distance
Very frequently
frequently
sometimes
never
5 I buy shoes which are liked by my family
Strongly agree
Agree
Indifferent
frequently
Disagree
Strongly disagree
6 I buy shoes which are advertised attractitively
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
7 I buy shoes which are advertised and endorsed by celebrity.
8 I like to buy shoes which are imported from Paris or Italy.
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
9. I like to buy shoes which are designed in Paris or Italy.
10. I like to buy shoes which are very stylish & of latest design.
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
11. I like to buy shoes which are less expensive but very stylish & of
latest design.
Strongly agree 30.00
Agree 50.00
Indifferent 14.00
Disagree 4.00
Strongly disagree 2.00
12. I Like to buy shoes which are not very stylish but comfortable
(%.of Respondents)
Strongly agree 10.00
Agree 30.00
Indifferent 18.00
Disagree 32.00
Strongly disagree 10.00
13. I Like to buy shoes which are not stylish but comfortable and long
lasting
Strongly agree
Agree
Indifferent
Disagree
Strongly disagree
14 I Like to buy shoes which are expensive & stylish but comfortable
strongly agree
Agree
Indifferent
Disagree
Strongly disagree
15 I like to buy Nike shoes which are expensive & stylish but
comfortable
Strongly agree 8.00
Agree 24.00
Indifferent 4.00
Disagree 2.00
Strongly disagree 2.00
16 I like to buy Nike shoes which are not very stylish but comfortable
Strongly agree 12.00
Agree 16.00
Indifferent 2.00
Disagree 8.00
Strongly disagree 2.00
17 I like to buy Nikeshoes which are not stylish but comfortable and
long lasting
Strongly agree 8.00
Agree 16.00
Indifferent 2.00
Disagree 12.00
Strongly disagree 2.00
18 I like to buy Nikeshoes which are not very stylish but comfortable
Strongly agree 14.00
Agree 16.00
Indifferent
Disagree
Strongly disagree
19 I like to buy Nikeshoes which are less expensive but very stylish &
of latest design.
Strongly agree 4.00
Agree 10.00
Indifferent 4.00
Disagree 14.00
Strongly disagree 4.00
20 I like to buy Nikeshoes which are very stylish & of latest design.
Strongly agree 2.00
Agree 6.00
Indifferent 8.00
Disagree 22.00
Strongly
disagree
2.00
21 I like to buy Tailor made shoes which are very stylish & of latest
design.
free.
23 I will certainly buy shoes if high quality imported scent given free.
Strongly agree 38.00
Agree 60.00
Indifferent 2.00
Disagree 2.00
Strongly disagree 0.00
Agree 52.00
Indifferent 14.00
Disagree 2.00
Strongly disagree 0.00
Disagree 16.00
Strongly disagree 4.00
BIBLIOGRAPHY
BOOKS
WEBSITES
Nikebiz : NIKE, Inc. Official Site, the world?s largest, leading athletic
brand[/url]
Nike town:
Business.com: - The Business Search Engine and Business Directory for
Business Information[/url]
Apna Bangalore: ]Apnabangalore.com [Home][/url]
Indiainfoline: Indiainfoline.com-Comprehensive information on stock
market, equity, derivatives, companies, Commodities,Forex, Global markets,
Mutual
fund,
IPO,Personal
Finance,
insurance,
cards,money,debt,mortgages,economy,sector[/url]
Nikes online store for India: [
Loans,
Credit